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The Bank of England’s first interest rate cut in four years has inspired an upswing in homebuyer activity, with major lenders like Barclays, Halifax, HSBC and NatWest now offering five-year fixed-rate mortgages under 4%, below the Bank’s 5% key rate. NatWest is now offering a five-year rate at just 3.71%, with a 40% deposit and a higher product fee, along with a 3.77% loan with a standard fee on energy-efficient properties. The last time cheaper loans were available was in early September 2022, shortly before the then Conservative prime minister’s disastrous “mini” budget. Comparatively, this time last year the average five-year fixed-rate mortgage was 5.82%. The market is enjoying an uptick in buyer activity and opportunity The improving economic environment in the UK along with increased political stability from the July general election outcome has led to the number of house hunters contacting estate agents for viewings increasing by 19% versus a year ago, according to data from property platform Rightmove. The number of new sellers coming to market also rose 5% this month compared with the previous year, while the number of sales being agreed is 16% ahead of the near-peak mortgage rate period of a year ago. The Bank of England might introduce further cuts The interest rate cuts from 5.25% to 5% on August first were the first since the start of the Covid pandemic, easing pressure on households after the Bank had raised borrowing costs to the highest level since the 2008 financial crisis to tackle soaring inflation. Figures recently showed that inflation rose to 2.2% in July, above the Bank’s 2% target but significantly lower than a peak of 11.1% two years ago after the Russian invasion of Ukraine triggered a surge in energy prices. The Bank is expected to meet on September 19th to make a new interest rate decision but is expected to keep rates on hold at its next meeting before restarting reductions in November where they might be lowered to around 4.75%. Financial analysts widely expect that the Bank will react to decreasing inflation by cutting rates further, possibly to as low as 3.5% by the end of next year. An exciting opportunity for expats With the UK property market offering favourable conditions for buyers, UK expat and foreign national investors are benefiting from a range of competitive mortgage products from lenders, a slight dip in property prices paired with a weaker pound, and an increase of choice in properties coming onto the market. Evidence of UK expat and foreign national investors’ optimism is clear from the number of investors searching for UK properties, with the number of searches for UK property by overseas buyers growing month-on-month and now accounting for 11% of all activity in the first 6 months of 2024, compared to just 6.8% of activity from the same period three years ago. These favourable conditions make now an ideal time for expats and foreign nationals to expand existing portfolios or dip their toes into the UK market for the first time. Tailor my property Individual lenders will set their own mortgage rates and terms so it’s always highly recommended to shop around for the deal best suited to your financial needs and investment goals. Consulting with an industry professional is vital to ensure you move in the right direction for your personal financial and property goals, whether it be renting, buying or selling property in the UK market. Contact Tailor My Property today and connect with our expert network of financial and property professionals who can assist and advise as you explore and navigate these exciting mortgage and property opportunities.

The UK property market responds to favourable interest rate cuts

The Bank of England’s first interest rate cut in four years has inspired an upswing in homebuyer activity.

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The average asking price of properties coming on to the UK property market fell by 1.5% month-on-month in August, according to online property portal Rightmove. The drop in new seller asking prices, equivalent to a fall of £5,708, brings the average price nationally to £367,785. The latest numbers are not a surprise for analysts as August has seen a monthly decline in prices from July for the last 18 years, and the shift is not out of character for the late summer months. That said, the UK’s property market activity has been boosted largely thanks to the cut in interest rates by the Bank of England, which reduced the rate from 5.25% to 5% on 1 August. Rightmove reports a 19% jump in the number of potential buyers contacting estate agents since then compared to the same period in 2023, with the number of new sellers putting their homes on the market up 5% compared to this time last year. Below we break down which areas are offering exciting opportunities for investors. Regional cities are growing in popularity The latest data from Twenty7tec has revealed that Leeds, Bradford, Newcastle, Liverpool, Manchester, and Sheffield now account for 10.99% of all purchase mortgage search activity, marking a 67.1% increase from April last year. This surge in demand highlights a shift in the UK housing market, with more buyers looking beyond London for affordable housing opportunities and quality-of-life. With a rising number of digital nomads who can work from anywhere and a growing sentiment among first time buyers and renters to get a foot on the property ladder away from the capital, different cities are experiencing an increase in interest, and some stand out above the rest. Manchester With its prime location, buzzing student population and growing popularity for major companies to set up new bases, Manchester has proven to be a prime opportunity for investors. According to the Office for National Statistics, the average house price in Manchester in June 2024 was £243,000, 3.9% higher than the average of £234,000 in June 2023. Additionally, the average price paid by first-time buyers was £223,000 in June this year, higher than the revised June 2023 average of £215,000. As for the rental market, the average monthly rent in July 2024 was £1,241, a 12.5% increase from July 2023. With the numbers indicating a growing upward trend in price points, 2024 might be the perfect time to move in on investment opportunities as the city grows in popularity and demand. Birmingham Beaten in size only by London, Birmingham has solidified itself as a hotspot for UK property owners in the post pandemic years. Boasting a thriving economy, impressive infrastructure developments and foreign investment, Birmingham is an exciting area for those looking to grow and strengthen a UK property portfolio. According to the Office for National Statistics, the average house price in Birmingham was £232,000 in June 2024, similar to the revised figure for June 2023. Across the West Midlands, the average house price rose by 3.1% over the same period, while the average price paid by first-time buyers was £204,000 in June 2024, in line with the average the year before. As for the city’s thriving rental market, private rents rose to an average of £1,003 in July 2024, an annual increase of 11.4% from £901 in July 2023. This was higher than the rise in the West Midlands over the year, and means buy-to-let property in Birmingham could offer consistent and reliable yields for property owners and landlords. Edinburgh Boasting six universities, a world-famous cultural scene and countless music venues, art galleries, museums and green spaces, Edinburgh is one of the UK’s most prime student cities and a highly popular opportunity for buy-to-let property investors. The Office for National Statistics's data indicates that the average house price in Edinburgh in June 2024 was £334,000, 5.9% higher than the average of £315,000 in June 2023. Across Scotland, the average house price in June 2024 was £192,000, which was more than a year earlier at £185,000. This means that in June 2024, Edinburgh had the highest average house price in Scotland. As for the highly competitive rental market, private rent prices rose to an average of £1,362 in July 2024, an annual increase of 14.8% from £1,186 the year before and higher than the average rise in Scotland at 8.2% over the year. With the demand for property in Edinburgh growing at a fast pace and the high likelihood of prices increasing with it, now is the ideal time to commit to the exciting opportunities the city offers. Tailor my Property The Bank of England’s early August interest rate cut and the UK’s post-election market confidence have made the second half of the year an exciting time for property investors to move ahead with plans to grow and diversify their UK property portfolios. That said, thorough research and market experience are essential to help identify prime regional locations, understand local market dynamics and assess potential risks. Tailor my Property offers an experienced network of property, investment and financial professionals who can assist with specific goals and queries across the broader United Kingdom. Get in touch today to find out more.

Regional UK cities offer an exciting investment opportunity

We break down which Regional UK cities are offering exciting opportunities for investors.

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Property prices in the nation’s capital are down 0.3% year-on-year, according to the latest data from Zoopla, with the average property price in London standing at £536,000 and buyers paying 96% of the average asking price. Across the UK, however, house prices rose to 2.1% last month, from 1.5% the month prior, the quickest rate since the end of 2022 according to property platform Nationwide, with the average UK house price in July standing at £266,334. The historic demand for London property According to a new study by the Institute for Fiscal Studies, house prices in London are £21,000 higher over five years than they would have been if the capital had kept pace with the rest of England’s. Historically, the demand for London property and the city’s population growth has outpaced its development. Over the 25-year period since 1996 the adult population of London grew by 29%, while the number of homes grew by only 23%. Londoners have also faced other challenges, with £7,500 added to their annual mortgage bill since Liz Truss’s infamous mini budget, and many wanting to move home looking at restricted budgets, high interest rates and limited supply challenges. Increasing buyer confidence In a massive sigh of relief for London’s renters and homeowners, the Bank of England cut interest rates from 5.25% to 5% last week, marking the first cut since the start of the pandemic in March 2020. Increased buyer confidence can also be attributed to post General Election stability and some lenders introducing more attractive mortgage products with sub-4% rates. Analysts predict this will lead to increased demand and spending in the capital’s property market before the year is up. Which London boroughs are outperforming others? There are certain boroughs of London that are experiencing increased demand due to prestige, lifestyle opportunities and commuter convenience into the city. Additionally, ongoing investment in infrastructure and regeneration projects has increased the appeal of these boroughs, attracting buyers seeking long-term value and potential capital appreciation. Projects like the Old Oak Common, a high-speed rail hub station regeneration plan for the Hammersmith and Fulham borough, plans to create thousands of new homes and jobs with the £50 billion rapid rail system proposed between London and the north of England. As a result, Hammersmith and Fulham property has experienced an annual increase of 5.6% and a monthly increase of 0.1%. The average house price in the area was recorded at £1,010,417, making it the fourth most expensive out of all London boroughs. Richmond upon Thames came in third, with an annual change of 5.6% and a monthly change of 1%, bringing the average home price to £949,555. Westminster comes in with an annual change of 4.7%, but a monthly decrease of -0.7%. Home prices in the area average £1,526,159, making Westminster the second most expensive borough, behind Kensington and Chelsea. How do London rent prices compare? According to recent data Tower Hamlets has the highest average rent price this year at £2,229 per month, a rental trend that dates back to back to 2015, when the average rent price in the borough was £1,731 per month. The data has also revealed that Havering has the lowest average rent price at £1,375 per month, with Barking and Dagenham averaging £1,425 per month. According to Rightmove, London has not escaped the national rental crisis, with rents in the capital rising 4% from a year ago in May, and some rents averaging close to £2,500 a month. Tailor my Property The nation’s capital offers an exciting opportunity to invest in some of the most historic, conveniently located and sought after property in the United Kingdom. That said, consulting with a professional ensures that you can protect your assets while maximising on an exciting market opportunity and pursuing your financial and property goals with peace of mind. Get in touch today to consult with one of Tailor my Property’s expert network of property, finance and investment professionals.

Analysing London property prices amidst the broader UK market

London offers an exciting opportunity to invest in some of the most historic, conveniently located and sought after property in the United

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Labour’s landslide election victory will have major ramifications for the British public, with the UK property market expected to experience some huge shifts in the next few months. Below we break down how the property market will likely be impacted over the next few months. Stamp duty land tax While the Conservatives had planned to make the stamp duty land tax break permanent, Labour has announced the threshold for stamp duty will revert to £300,000 from the current temporary level of £425,000 in April next year. Labour’s manifesto had also previously stated that non-UK residents buying residential property in England or Northern Ireland will soon pay an additional 1% surcharge on top of the stamp duty rates paid by UK residents, bringing the surcharge total to 3%. This makes now the ideal time for non-UK residents to move ahead with UK property market plans and ambitions. International investment will be a priority The incoming Labour government’s manifesto also emphasises the need for public and private investment to ensure economic growth. Incoming chancellor Rachel Reeves’ proposed economic platform suggests that securing fresh capital from foreign investors will be instrumental and David Lammy, the new foreign secretary, is enjoying a whirlwind tour of Germany, Poland and Sweden in a bid to begin to ‘reset Britain’s relations with Europe’ and entice investors back to British sectors. Rental sector changes Based on Labour’s manifesto and election campaign messaging the market will experience an almost immediate change in legislation in the rental sector. Labour plans to abolish Section 21 ‘no-fault' evictions, which currently allow landlords to evict tenants without providing a reason. This allows tenants greater security and could greatly reduce the turnover rate in rental properties but also limits landlords' ability to manage their properties flexibly and deal with problematic tenants swiftly. Additionally, Labour aims to empower tenants to challenge excessive rent increases, providing them with a mechanism to dispute hikes they deem unfair, a significant new suggestion considering the ongoing UK rental crises and housing shortage. House building as a priority Labour campaigned with a promise to deliver 1.5 million over the course of the next five years, aiming to change the National Planning Policy Framework and restore previous targets. The new government is so committed to the cause it is also aiming to allow local authorities to earmark more green-belt space for home developments, beginning with ‘brownfield sites’ and then a new category of ‘grey belt’ land made up of pockets of green-belt land that are not as naturally rich. The new green-belt plans are part of several Labour planning policies that also include reintroducing mandatory local housing targets scrapped by the Tories, giving planning powers to combined authorities, and publishing new design codes to raise the quality of new builds. Only time will tell if the new government can hit the ambitious number, but there’s no doubt an increase in available housing will impact the UK property market. Non-dom tax status Speculation has been rife for months regarding the replacement of the old non-dom tax system, affecting 68,800 individuals living in the UK who are non-domiciled and don’t pay tax on their worldwide income. The new Labour government has pledged to scrap the non-dom tax status to raise more money for the NHS and other public services, but not much else is known about the proposed changes. The term ‘non-dom’ describes a UK resident whose permanent home for tax purposes is outside the UK, meaning they only pay UK tax on the money they earn in the UK, not money made elsewhere in the world. The Conservatives has previously proposed that people who moved to the UK from April 2025 would not have to pay tax on money they earned overseas for the first four years after which they would pay the same tax as everyone else should they remain in the country. Labour has pledged to strengthen these planned reforms and has hinted that it would remove a 50% discount in the first year of the new rules and include foreign assets held in a trust within the UK inheritance tax framework. While new legislation is likely only to appear around March or April 2025, incoming Chancellor Rachel Reeves claims the changes could raise £2.6 billion over the course of the next Parliament. Increased certainty for the domestic market With a new government officially announced and a set vision for the market put into place, many buyers and sellers who had been waiting for certainty in the market are now choosing to move ahead with their plans, allowing much more home-mover confidence heading into the second half of the year. The UK’s property market is showing signs of resilience and potential growth as it heads into the autumn. Supported by political stability and anticipated rate cuts, the market can likely look forward to increased activity and improved affordability in the next few months. Tailor my Property With post-election optimism at an all-time high and a number of major changes on the way, now is the ideal time to move ahead with plans to invest in UK property, especially for non-UK residents and expats who might be impacted by anticipated stamp duty and non-dom tax changes. As always it is highly recommended to consult with a professional to ensure you navigate the current market and its opportunities accurately. Tailor my Property has a professional network of financial, property and investment specialists who are able to assist and tailor a strategy suited to your individual needs. Get in touch today to find out more.

What does a Labour victory mean for the UK property market?

Labour’s landslide election victory will have major ramifications for the UK property market.

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As the UK housing shortage worsens, government initiatives are encouraging private investment in social housing, with subsidies and tax incentives available to landlords, offering an interesting opportunity for those looking to diversify property portfolios. What exactly is social housing investment? Simply put, social housing investment refers to the process of investing in properties that are specifically used for social housing, including council houses, housing association properties and living facilities. Prices within the social housing market typically begin from £80,000 and generally offer returns of 8-10%. Below we break down why this opportunity is ideal for property investors. Investing in something socially responsible Social housing is an ethical investment that makes a genuine contribution to society, assisting more than 250,000 people currently homeless and many more vulnerable people needing a permanent place to call home. The demand for social housing is expected to grow in the coming years due to population growth, changing demographics, and increasing levels of homelessness. According to the BBC, English councils spent more than £1.74 billion on housing homeless people in hostels and B&Bs between April 2022 and March 2023. Not only is this incredibly costly, it also fails to provide a permanent solution to the problem. With councils spending millions on poorly maintained temporary accommodation, there is a gap in the system to provide high quality properties that people can call home. By engaging in social housing, investors are helping to create affordable housing and secure, long-term tenancies for those who need them. Long term returns Social housing can offer tenants a longer lease than private housing, with a flexible tenant in a council house usually signing a tenancy for at least five years, making social housing a low-risk investment option which can provide steady rental income over several years. These investments are also likely to yield consistent and secure returns. The housing shortage in the UK ensures that demand is sustained, often with long waiting lists of people on the register for properties, with no service charges or property management fees to cut into financial returns. Little to no maintenance required With social housing, the housing operator (generally the housing association or local council) usually handles property management, including everything from sourcing the tenant to collecting rent and dealing with ongoing maintenance issues. This means investors can rest easy knowing their property is properly cared for, without the involvement of a letting agent. Investing in social housing can eliminate many of the headaches typically associated with being a landlord while creating a passive income because housing associations provide secured contracts with income backed by the central government. The housing association then pays 100% of rent directly to investors, who can enjoy uninterrupted rental income with attractive yields from 8% or higher. Diversifying your investment portfolio Investing in affordable housing is a viable strategy to diversify an investment portfolio. It offers an alternative to other investment types that can be more volatile, like stocks and shares. As it’s such a low-risk investment, you can reduce the overall risk exposure in your portfolio, and balance out any more traditional high-risk investments you’re putting your assets into. This approach is becoming increasingly popular among UK property investors as the demand for affordable housing grows. Tailor my Property Tailor my Property has an extensive network of investment, property and financial experts who can help you diversify your portfolio and plan for opportunities like social housing investments accordingly. Get in touch today to find out more.

Social housing investments offer a unique opportunity for the property market

As the UK housing shortage worsens, government initiatives are encouraging private investment in social housing.

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With the upcoming election taking place on July 4th many eyes are eagerly waiting to see how pre-election campaigning and the ultimate outcome will influence the UK property market. Traditionally, elections have been characterised by fears of potential tax hikes and dramatic shifts in the market, but many analysts have optimistic expectations this time around, especially since the election announcement coincided with inflation dropping to 2.3%, bringing it closer to the Government’s benchmark of 2%. Additionally, there are hopes of a cut in stamp duty that can give the market a welcome boost. We break down potential property market outcomes below: A slowing market The UK housing market has been experiencing recovery in the last few months with more homes coming onto the market for sale, and an increased volume of sales overall. Even with mortgage rates stalling at 4.5% to 5% there are signs of growing confidence among potential buyers, many of them first timers. That said, the announcement of the election will likely mean that the market will slow as buyers and sellers wait to see which potential new policies and announcements are on the horizon, delaying until the autumn when the election is over. Buyers who are currently close to completing a property purchase will likely want to push through and finalise everything prior to the election itself. There is likely to be an uptick in the market again once the election is finalised and with the event taking place sooner than anyone expected, there is more opportunity for buyer demand to gain traction over the autumn season with less uncertainty in the market. How will house prices be affected? One of the major concerns for buyers, sellers and industry professionals is how resulting property prices will impact a recovering market in the post-election period. Property platform Compare My Move has reviewed data of house prices in the 12 months following major elections and believes that house prices tend to rise by an average of 4.6% in the first 12 months immediately after the election. According to property agent Knight Frank’s predictions, the Central London market will be impacted the most by political uncertainty, with the short term disturbance prior to the election wiping out a forecasted 1% rise in prime central London property prices. The agent’s prediction for the rest of the UK, greater London and prime outer London remains unchanged, with property prices rising around 2%. Housing delivery and planning A major concern currently impacting the market, and likely to be an election hot topic, is the housing shortage impacting many potential buyers. Housing delivery and planning has already been a benchmark topic for certain parties, with Labour aiming to deliver 1.5 million homes over the next five years. This is likely to impact the market in the long term but won’t have short term impacts on the current market immediately. The rental market With the ongoing property shortage causing skyrocketing rental prices, the rental market is a major point of concern for all potential new governments. From a policy perspective, perhaps the biggest impact of a July general election is the prospect of the Renters Reform Bill. In May 2023, the government published draft legislation for the Renters’ Reform Bill which included measures to abolish Section 21 evictions and end fixed-term tenancies. When the election was called, the bill had passed a second reading in the House of Lords and was awaiting the committee stage. This means there’s no chance of the reforms becoming law before the election. Bills cannot be carried over into a new parliament, which means that whoever wins the election will need to launch a new bill if they want to introduce rental reforms. Only time will tell how the new government will try to overcome the issue. Tailor my Property The next few months offer an exciting opportunity within the UK property market, and with inflation falling to 2.3% in the year to April, and another drop anticipated soon, it looks as though mortgage markets will remain relatively stable in the short term. This is exciting news for buyers, sellers and estate agents who have experienced a fragile market in recent months and will benefit from the stability that will follow the post election landscape. While the next six weeks will be slightly tougher for new sellers entering the market, there is an opportunity for buyers to take advantage of a quieter market in a short window of opportunity. Anyone looking to enter the UK property market or expand their current portfolio should consult with a professional to ensure they navigate this opportunity accurately. Tailor my Property has a professional network of financial, property and investment specialists who are able to help you achieve your goals and maximise on this particular window of opportunity. Get in touch today to find out more.

How will the 2024 general election influence the UK property market?

With the upcoming election taking place on July 4th many eyes are eagerly waiting to see how pre-election campaigning and the ultimate...

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The average UK property house price reached a record high of £375,131 this month according to property analysts Rightmove, with the average prices of properties coming to market rising by 0.8% (£2,807) month on month. With a long list of political, economic and social factors still influencing the market in 2024, we break down why house prices are continuing to rise. What is the bond market? According to Rightmove, the number of sales agreed during the first four months of 2024 was 17% higher than for the same period in 2023. One of the key drivers for growth this year is the activation of previous would-be buyers who did not pursue property plans last year and braved this year’s mortgage rates to pursue their ideal properties. Further proving the market's resilience is an impressive 12% increase in the number of new sellers entering the market, cementing a growing sense of trust in the economy. Additionally, May has historically proven to be a strong time for price growth in the UK, and the month has seen new price records set in 12 of the previous 22 years. There are typically more properties on the market in spring as sellers emerge from winter and consider a change, and the market is generally more active once the weather starts to warm up and the clocks go forward. What is driving the demand for UK housing? An anticipated base rate cut is likely a reason influencing higher housing demand. Inflation is currently 3.2% and has continued to undershoot expectations. The Bank of England, which has maintained the base rate at 5.25%, anticipates inflation to fall below the 2% target, which could lead to more favourable conditions easing pressure on buyers. Meanwhile mortgage approvals are at an 18-month high, suggesting a return to pre-pandemic activity. Additionally, rental growth across the UK remains historically high, with certain regions like Scotland, the North East, and Wales still exhibiting strong numbers. This upward trend in the rental market proves a sustained demand for rental properties, which can also influence the overall housing demand. Which regions are experiencing the most activity? Regionally there are variations in demand for UK property, but average asking prices have gone up in every area of the kingdom in May, with regions like the North East and the North West seeing the most growth. The largest annual increase in asking prices is in the North East of England at 5.8%, with average asking prices in this region now at £190,158. Meanwhile, the North West boasts major cities like Manchester and Liverpool and is fast becoming the country’s property investment hotspot thanks to booming business and tech markets, an increasingly young working demographic and a large student scene. London has also experienced higher than average quarterly growth as the post-pandemic ‘race for space' slows down and buyers return to major cities. Long term predictions for the UK property market In November of last year Savills predicted that house prices would fall by an average of -3.0% in 2024, and that housing transactions would remain at around 1 million for the year. Thanks to decreases in the cost of mortgage debt and increasing demand it now predicts that UK house prices are expected to rise by 2.5% this year, and Rightmove anticipates the number of completed house sales this year to reach around 1.1 million. Tailor my Property While UK property prices enjoy an upward trajectory there is ongoing uncertainty around future base rate cuts, a soft outlook for economic growth in 2024, and the looming general election which could impact health in the market and create a complex environment for the UK housing sector. It is imperative for buyers and investors to enter the market with the guidance and expertise of a professional to help them navigate their personal and property goals with peace of mind and clarity. Get in touch today to find out more about our expert panel of property, finance, investment and tax professionals.

UK house prices hit record high

We break down how the bond market is performing in 2024.

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As 2024 heads toward the mid-year mark the UK property and rental markets have been influenced by GDP growth, election promises, unemployment rates and rising wages which are fuelling housing demand and price appreciation. While the market lost momentum last year because of high mortgage rates and a lingering cost of living crisis, there are promising signs of it bouncing back. We break down the latest data below. UK rental prices hit record highs Figures from the Office for National Statistics (ONS) show that renting costs in the UK continue their upwards trajectory with average rents jumping by 9.2% in the year to March 2024, the largest annual increase since data collection began in 2015. Driven by the ongoing UK supply and demand imbalance, the average rent for the United Kingdom in March was £1,246 - £104 higher than a year ago. Average monthly rent increases across the UK ranged from 8.8% in England through to 10.9% in Scotland and 9% in Wales. Unsurprisingly, London saw the biggest city increase overall at 10.6%. The rising cost of renting has been a significant driver of change in the rental market, caused by soaring interest rates and landlords passing on their escalating expenses to tenants who are fighting over a small pool of rental properties. As the rental crisis continues to affect the market it is expected to be a hot topic for political parties and potential voters in the next general election. That said, according to Zoopla landlords are receiving around 15 inquiries per property, around double the average number before the pandemic, making now an ideal time for buy-to-let investors to explore their property ambitions in the rental market further. The housing market continues to recover According to online sales portal Rightmove, asking prices for UK properties rose at the highest annual rate in 12 months, driven by more houses coming to market in the last year. The average asking price of homes put up for sale rose by 1.7% from a year ago to £372,324, close to the record high previously seen in May 2023. This data indicates that Britain's housing market is experiencing a recovery in demand and prices, helped by a fall in borrowing costs which initially surged in 2022 when former Prime Minister Liz Truss's plans for sweeping tax cuts upset financial markets. Prices sought by sellers have risen by 1.1% in month-on-month terms, slowing from a 1.5% increase in the previous four weeks. The number of new sellers was also 12% higher than a year earlier, and the overall number of sales was up by 13%, indicating a growing confidence among buyers. With the continued month-on-month growth in house prices there are promising signs for the market in the run-up to spring, which is historically known for its higher demand from buyers and sellers. This shows increasing strength within the UK property market and signals a stabilising economy overall, meaning that now might be the time to move ahead with investment plans in the housing market. Tailor my Property  Consulting with an industry professional is vital to ensure you move in the right direction for your personal financial and property goals, whether it be renting, buying or selling property in the UK. Tailor my Property’s expert network of property, finance and investment professionals will be able to assist you with assessing the market and moving ahead with peace of mind and clarity. Get in touch today to find more.

Updates on the UK property market

There are promising signs of the housing market bouncing back. We break down the latest data below.

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Located in the heart of the West Midlands and beaten in size only by London, Birmingham has solidified itself as a hotspot for UK property investors in the last few years. Boasting a thriving economy, impressive infrastructure developments and a diverse property market with consistent rental yields, there are plenty of reasons why now is the time to invest in buy-to-let property in this buzzing city. Property appreciation Birmingham’s house prices rose by an average of 14.9% following 2022’s Commonwealth Games, and if projections are accurate, the local housing market is set to see prices soar by 19.2% between 2023 and 2027 compared to the UK average of 8.9% over the same period. With a projected capital appreciation of approximately £51,000 by 2026 and an increase in average property value of £270,340, the potential for capital appreciation in Birmingham’s property market makes it an attractive location for long-term property investment. Affordable property prices The average property price per square foot in inner London at the end of 2023 was £724, while Birmingham’s average property price per square foot was £283,82, below the UK average of £339,43. As Birmingham’s property prices continue their upward trend, investors stand to profit from the city’s promising trajectory. Infrastructure development The recent Commonwealth Games provided a vital injection of funding and development into Birmingham, and the 20-year Birmingham Big City Plan is set to continue the area’s incredible growth and change. The next few years will see major improvements and growth in transport facilities, modern office spaces, retail outlets, leisure facilities and residential apartment buildings. A thriving business scene The professional demographic in Birmingham contributes to a strong and consistent demand for quality housing. There is a strong mix of British and international firms choosing to open or expand offices in the city, including Goldman Sachs, National Express, Sainsbury’s, Lloyds Bank, Accenture, Deutsche Bank, HSBC, the BBC and Jaguar to name a few. In addition to having the fastest growing economy in the Midlands, the number of employees in Birmingham is projected to reach 613,800 at the end of 2024. The strong job market and business opportunities drive up housing demand, cementing its appeal for buy-to-let investments. Foreign Investment Enjoying significant investments from India, the US and Germany, Birmingham has become the UK’s premier destination for foreign direct investment, generating more than 12,000 jobs in the past decade and ranking as the seventh most attractive UK city for foreign investors. Expansion of travel and connectivity Another major development on track for the city is the HS2, a high-speed railway system linking London and the Midlands which will transport passengers from the capital to Birmingham in just 49 minutes. While another Northern stretch between Birmginham and Manshester has been scrapped, Phase One is expected to open between 2029 and 2033 and will run the 215 km from London to Birmingham. Birmingham Airport’s expansion is also set to enhance the city’s economy and connect it to more people than ever before. The airport expansion includes a terminal extension and is expected to be completed in 2024, creating around 3,500 new jobs in the process. Strong rental demand With a student population of around 80,000 and a projected increase of 3.9% in the young population over the next decade, property investors can expect to benefit from strong rental yields. According to JLL projections, rental prices in Birmingham could increase by 12% over the next 5 years, making it the fastest level of growth in the country. The affordability of Birmingham property combined with strong tenant demand driven by a young population, the city’s five renowned universities and a growing professional demographic results in high rental yields for investors. Green spaces and active lifestyle Birmingham’s beautiful green spaces and outdoor activities offer an attractive lifestyle for both residents and visitors. The city boasts a wealth of parks and recreational areas, such as the Botanical Gardens, Kings Heath Park and Sutton Park amongst others. These green spaces and outdoor activities enhance the overall quality of life in the area, offering activities like climbing walls, ziplining, kayaking and archery, along with spaces for neighbours, friends and family to socialise. Contact Tailor my Property As an investor, expanding and diversifying your property portfolio with buy-to-let properties in developing and thriving areas is a smart way to ensure steady returns. That said, thorough research and market experience are essential to help identify prime locations, understand local market dynamics and assess potential risks. Tailor my Property offers a network of property, market and financial professionals who can assist with specific property and investment goals in Birmingham and the greater UK market. Get in touch today to find out more.

Why you should be investing in Birmingham property

Located in the heart of the West Midlands and beaten in size only by London, Birmingham has solidified itself as a hotspot for UK...

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The city of Manchester is one of the top locations for UK property market investors and buy-to-let properties, and there’s a long list of reasons why. The area boasts a thriving economic landscape, one of the country’s largest major student scenes, a growing population of young professionals, and significant investments in major infrastructure that translate into high demand and consistent rental yields. According to the Big Six Residential Development Report by JLL, rental prices increased by 19.6% in the 12 months leading up to June 2023, and Manchester has also enjoyed the highest growth of the UK’s six “big cities” over the past ten years, with its economy growing by 32%. Below we break down why Manchester is a prime UK property investment opportunity. The location Located in the heart of the United Kingdom, within the North of England, Manchester is one of the best connected and most accessible cities in the UK. The city’s central geographic location puts it at the heart of the Northern labour market, giving businesses in the city access to one of Europe’s largest commuter workforces. On top of having the largest travel-to-work catchment area of any regional UK city, more than 2.8 million people live within the city region and the working age population is just under 1.8 million people. The city’s world class, multimodal and integrated transport options include a comprehensive rail network, 48 kilometre outer ring road, and an international airport that serves more than 185 destinations. Manchester also offers excellent access to other major UK cities. Direct services to and from London run every 20 minutes, taking just over two hours, as well as frequent, direct trains to neighbouring areas including Leeds, Liverpool and Birmingham. Student life Manchester’s student population is one of the largest in all of Europe and with over 100,000 students in the region, a report from Zoopla in 2020 found that demand for property in the city outweighs supply by 5:1. Additionally, international students attracted by the globally renowned level of education form approximately 20% of the University population. The city also boasts an impressive graduate retention rate of 51% - the second-highest in the country after London. The vast, growing student population translates to a consistent demand for varying types of student property to suit all budgets. This includes everything from houses and city centre apartments to purpose-built accommodation on or near campuses. These properties achieve excellent returns for investors through capital appreciation and rental yields commonly found upwards of 7%. Quality of life Previously voted the ‘Most Liveable City in the UK’ and the ‘Third Best City in the World’, Manchester offers an exciting lifestyle for people of all ages and backgrounds. From the buzzing urban city centre and its international cultural attractions to the natural beauty of the Pennines and the Peak District, the city boasts access to music, performing arts, sport, leisure, history and heritage attractions. Manchester is also enjoying the benefits of large-scale government investment and development of infrastructure. The city’s new innovation district will occupy a nine-hectare site near Piccadilly Station and will include 1,350 new homes. Manchester is also part of a £160m 'Investment Zone' which is predicted to create around 32,000 jobs with public funding to be spent on the region's advanced manufacturing sector, infrastructure and businesses over the next 10 years. The initiative is expected to attract around £1.1billion of private sector investment to the region. Business opportunities Since the early days of the industrial revolution Manchester has played a key role in the UK’s economy. Today it is home to more than 2.8 million people, with an economy bigger than that of Wales or Northern Ireland, and represents the largest city region economy outside London with a gross value added (GVA) of £78.7 billion. Major international companies like Amazon, Google, Microsoft, Booking.com , Kellogg’s, Jaguar Land Rover and others have set up offices in the area. Additionally, several Manchester-born companies have flourished in recent years, including Boohoo, AO and AutoTrader. With the boom in businesses now calling the city home, easy access to other major areas and a large retention rate for young graduates, Manchester boasts a thriving job market and local economy. Contact Tailor my Property Buy-to-let property in Manchester offers investors an exciting opportunity to capitalise on an incredible location and a high, consistent demand for quality housing. For those looking to learn more about the area’s thriving market and the options available to investors, Tailor My Property has an expert network of property, mortgage and finance professionals who are able to advise and assist with a wide range of queries. Get in touch today.

Why Manchester is a prime investment opportunity

The city of Manchester is one of the top locations for UK property market investors and buy-to-let properties, and there’s a long list of...

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The Bank of England has announced that it will hold interest rates at 5.25%, marking the fifth time in a row the Rate has been frozen since it rose to its current level in August last year. Forecasts predict three cuts of 0.25 percentage points later this year, the first expected to take place in June, and according to the Bank rates will fall to 4.5% before the end of 2024. Below we break down what this means for the UK property market and mortgage rates. How do interest rates impact UK mortgages? Interest rates set by the Bank of England affect mortgage, credit card and savings rates for millions of people across the UK. These interest rates move up and down in order to control UK inflation, which has come down sharply in recent months, easing cost-of-living pressures. According to the government's English Housing Survey just under a third of households have a mortgage, and when interest rates rise or fall more than 1.4 million people without fixed rate deals see an immediate change in their monthly payments. The Bank of England says that interest rate cuts are expected soon despite last week’s announcement that they would remain at the current rate, their highest for 16 years. According to some forecasters, this means that sub-4% mortgages are back ‘on the cards’ in the coming few months. Buy-to-let UK mortgages Buy-to-let mortgages allow property owners to invest in the property market by purchasing homes in the UK to rent to tenants. The need for landlords in the UK private rented sector is currently at record highs, with the number of enquiries per home to rent still double pre-pandemic levels. This year marks a prime opportunity for more investors to explore the buy-to-let market and bridge the supply-and-demand rental gap, and there are a number of enticing mortgage options available. For example, Nationwide-owned lender the Mortgage Works has become the first buy-to-let lender in the current cycle to offer a sub-4% mortgage. The landlord-centred lender is introducing lower rates from 26 March, including a 3.99% five-year fix with a 55% loan-to-value and 3% fee. Mortgage rates for those returning to the UK The term ‘expat mortgages’ refers to mortgages for former residents who want to return and buy a property in the UK, but either don’t live there anymore, or have recently moved back. For many expats returning to the UK the option to invest in property is an enticing one, either as a safety net, an option for UK-based family, or as a potential buy-to-let property in the future. Returning expats do have a number of exciting mortgage options within the UK, and HSBC offers an opportunity to lend to UK residents based overseas at a competitive rate just over 4% if they are using the property either to return to the UK or for domestic family use. That said, expats looking for a mortgage in the UK could potentially face a few additional hurdles compared to other investors as mortgage lenders like to see a solid UK credit history and financial ties to the UK. In these instances it’s always imperative to adhere to professional guidance and advice to ensure you adjust back into the UK property market with confidence and clarity. Tailor my Property Individual banks will set their own mortgage rates and terms so it’s always highly recommended to shop around for the deal best suited to your financial needs and investment goals. Contact Tailor My Property today and connect with our expert network of financial and property professionals who can assist and advise as you explore and navigate the mortgage and property opportunities of the UK market.

UK mortgages offer exciting new opportunities for the property market

The Bank of England has announced that it will hold interest rates at 5.25%, marking the fifth time in a row the Rate has been frozen...

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March 6th saw Chancellor Jeremy Hunt deliver the government’s Spring Budget, likely the last financial statement before the next general election, and the update included significant news for UK property owners and landlords. Amidst hopes of a much-needed boost for the sector after successive interest rate rises and cost-of-living pressures, certain upcoming changes to the market could make now the perfect time to invest in UK property. Below we break down key updates from the budget. Capital Gains Tax The chancellor announced that Capital Gains Tax (CGT), a tax charged on gains made when an asset like property is sold or transferred, is to be reduced from 28% to 24% on 6 April 2024 in a bid to try and increase property transactions. It was also previously announced that the CGT free Annual Exempt Allowance (AEA), the amount of gains you can make in a tax year before they start to be taxed, will also be reduced. The AEA threshold, which is currently at £6,000 for 2023/24 tax year, will be halved to £3,000 from the 2024/25 tax year. Multiple Dwellings Relief and Stamp Duty Land Tax Multiple dwellings relief (MDR) is an opportunity in the Stamp Duty Land Tax (SDLT) regime which can reduce the amount of tax paid when buying two or more residential properties in the same or a linked transaction. According to the Chancellor the current relief system is “regularly abused” rather than encouraging investment in the property sector, and in recent years many claims by taxpayers that granny flats, annexes and outbuildings constitute separate single dwellings have come to court. MDR will no longer be applicable for transactions that complete or are substantially performed after 31 May 2024, but will continue to apply to transactions if contracts were exchanged before 7 March 2024. Landlords looking to grow their portfolios could be affected by the scrapping of multiple dwellings relief from 1 June 2024 which means the next few months might be the ideal time to move ahead with multiple property investment plans. The government commits to building more homes The Chancellor has also re-iterated the Conservative party’s commitment to build one million homes by the end of the Parliament - allocating £242 million to new house building. According to Hunt financial allocations amounting to £188 million are designated for development projects in Sheffield, Blackpool, and Liverpool among others. Addressing ongoing availability issues in the housing market, the Chancellor also declared the abolition of the furnished holiday lettings regime. This is with the intention to discourage the preference of letting properties to holidaymakers over long-term tenants. The non-dom tax status has been abolished Hunt also announced that there will be changes to the current tax regime for non-domiciled people who live in the UK and pay tax on UK earnings, while maintaining a main home overseas. As of April 2025, new foreign landlords in the UK won't be asked to pay tax on foreign income for four years but after that will be regarded the same as other UK taxpayers. The Chancellor has estimated that the new plans will raise £2.7 billion for the UK economy, but many industry experts predict that it will make investment from overseas more difficult in future, and seeking expert guidance will be vital to ensure investors and landlords get the most out of their goals for the market. Seeking professional guidance Several of the Chancellor’s updates from the Spring Budget indicate that now might be the ideal time to act on any plans for the UK property market, whether as a landlord or for your own personal requirements. For those looking to invest in the UK property market Tailor My Property has an expert network of property, mortgage, tax and finance professionals who are able to advise and assist with a wide range of specialist queries, requirements and goals. Get in touch today to find out more.

What the UK’s Spring Budget means for the property market

March 6th saw Chancellor Jeremy Hunt deliver the government’s Spring Budget, likely the last financial statement before the next general...

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